“As a dog goes back to its vomit, so a fool repeats his folly.” — Proverbs

I believe that each of us is the master of our own destiny. We create our own future — good or bad — by the decisions we make.

There is an element of luck in the life we get. Other than in the case of health issues, divorces and job losses, we’re control our destiny; we (mostly) get the future we deserve.

Wayne Gretzky didn’t believe in luck either. He said that the harder he played, the luckier he got. Skate hard, practise sound positional play and back check well and you’ll succeed in hockey.

Life is like hockey. Make good decisions — spend less than you make, avoid credit-card debt, insure financial assets, save regularly — and you should succeed financially. You don’t need to earn a high income or have financial sophistication, just common sense.

As Warren Buffett, the world’s greatest investor, says, “To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights or inside information. What’s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework.”

It’s that simple, folks. The principle is simple; the execution not always so.

Here are my 10 steps for achieving financial success.

1: Spend less than you make. This sounds so obvious that it seems silly to even have to say it. Spending more than you earn puts you into debt and risks financial ruin. Record ALL spending for two months, then download a budget spreadsheet to categorize spending and look for areas to make cuts. Create a reasonable budget and stick to it.

2: Before saving or investing, pay off credit-card and other consumer debt. Trying to survive financially with high-interest debt is like trying to swim with a rock tied to your waist. Lose that rock. Otters swim with a rock; you can’t. You otter lose that rock (sorry, I couldn’t resist).

4: Whether your objective is saving for retirement or your children’s education, you need to know how much money you’ll need. Online calculators exist, but do-it-yourself plans can be wildly inaccurate. Ask your financial planner for help. Most people need about 50 to 80 per cent of their pre-retirement income in retirement. A rule of thumb is to multiply your annual retirement income needs by 25 to determine your required savings, but account for Canada Pension Plan, Old Age Security, employer pension plans and part-time, post-retirement work. (Rules of thumb can be inaccurate so don’t rely solely on them.)

5: Save 10 to 15 per cent of your net income. Few do this, one of the reasons many Canadians are in dire straits. Have these funds automatically deposited into savings or an investment account, depending on whether it’s for short- or long-term needs. Never stop.

6: Save for short-term goals. Don’t rob your retirement savings by dipping into long-term savings for emergencies and short-term spending. You should have savings for things such as an unexpected car repair or a winter vacation.

7: Invest your short-term money in fixed-income securities such as high-interest savings accounts, bond funds or balanced funds. When saving for something you intend to buy in five years or less, stability is more important than the growth potential from equity investments.

8: Rethink your definition of risk. The biggest risk is not that your investments will fluctuate in value (they will!) but that you’ll invest too little too conservatively and fall short of your goals. If you’re 40 and won’t need your money for another 25 years, don’t fret about a 25-per-cent drop. Market lows are an opportunities to buy into a rising tide at reduced prices.

9: For your long-term portfolio, equities (stock funds, for example) should give the highest returns, and they’re taxed at a lower rate than fixed-income products. Consider increasing your allocation to fixed-income products as you approach the time when you’ll need the funds.

10: Set a reasonable savings target. You’ll need to estimate the savings and the rate of return you’ll need to achieve your retirement goals. If it’s $500 a month, start now and never stop. Procrastination will cost you. This requires math. Your advisor can help.

These tips can turn your finances around. Check off those that you do now and identify and rank those you aren’t doing. A Certified Financial Planner can help.